Lõppvarad

Lõppvarad, also known as final assets, refers to the remaining assets of a company after all liabilities have been paid off. These assets are typically sold to raise cash for creditors or shareholders. The process of selling lõppvarad is often referred to as liquidation.

The term lõppvarad is commonly used in the context of bankruptcy proceedings in Estonia, where it is regulated by the Bankruptcy Act. The liquidation process involves the appointment of a liquidator, who is responsible for selling the company's assets and distributing the proceeds to creditors in accordance with the priorities set out in the Bankruptcy Act.

The types of assets that can be considered lõppvarad vary depending on the specific circumstances of the bankruptcy. These can include tangible assets such as machinery, equipment, and inventory, as well as intangible assets such as intellectual property and goodwill. However, certain assets may be exempt from liquidation, such as those used for personal purposes by the company's directors or employees.

The sale of lõppvarad is a complex process that requires careful planning and execution. The liquidator must ensure that the assets are sold at a fair market value and that the proceeds are distributed to creditors in the correct order of priority. This process can take several months or even years, depending on the size and complexity of the company's assets.

In some cases, a company may be able to restructure its debts and continue operating, rather than going through the liquidation process. However, if the company is unable to do so, the sale of lõppvarad may be the only option for creditors to recover their losses.